Electric Scooters: French Company Red Electric Goes bankrupt

Founded in 2015, Red Electric had big ambitions for the future. Due to a lack of funds, the Nancy-based company is unfortunately forced to cease its activities.

The Nancy commercial court has ordered the judicial liquidation of Red Electric. As a result, the French company will not have a second chance. Despite its recent fundraising, it disappears permanently from the scene.

Based in Nancy, Red Electric entered the electric scooter market in 2015. Its first model, assembled in China, met with some success among delivery professionals. The launch of the Model E, a scooter designed for individuals and distributed by FNAC, was supposed to enable it to reach a new level.

French-made electric scooters that will never see the light of day

Red Electric aimed to relocate the production of its vehicles to Le Mans, at a factory operated by industrialist Chastagner. Last year, the company opened its capital to private individuals. The operation allowed it to raise 850,000 euros, an amount higher than the initial goal of 500,000 €. But Red Electric needed more to turn things around, after suffering heavy losses in 2021.

In a still embryonic market, the arrival of new competitors probably weakened Red Electric’s position. The COVID crisis also had negative effects on the company’s financial health.

Since Red Electric’s scooters are connected, server shutdowns could impair their functionality. More generally, all issues related to maintenance and spare parts remain unresolved with the disappearance of the brand.

Also read: Motorcycles and scooters: Honda ready for the big electric push